Sarbanes Oxley Act SOX

After major companies and accounting scandals have affected Tyco, WorldCom, Enron, the federal government passed a law called the Sarbanes-Oxley Act, also known as "Public Accounting Reform and Investor". Protection Law "law was passed to prevent illegal and misleading acts of financial journalists and to prevent declining confidence in public accounting and reporting. The two important subjects covered by the Sarbanes-Oxley method are the independence of the auditor and the reporting and evaluation of internal controls under section 404.

In 1989, Congress passed the whistleblower protection law to protect federal officials from workplace retaliation when cheating was revealed. In 2002, SOX (Sarbanes - Oxley Act) introduced guidance on reporting to listed companies and strongly protected whistling employees. Input ombudsman: Independent representative who gives advice to employees (or students, citizens etc.) and can directly report to the CEO outside the company management level or the board of directors. This approach provides guidance and confidentiality to employees and provides early warning and practical advice to the company.

According to Hunt's article, the Sarbanes-Oxley Act (SOX law) is too strict, so it is over-emphasizing the Public Company Accounting Oversight Board (PCAOB), the governing body (Hunter, 2007). I discuss how SOX law is unfair to domestic and foreign companies, SMEs, their shareholders, and the general public. This article explains how this bill allows companies to take unethical behavior to prevent business execution and accumulation of fines (Hunter, 2007). This article clarifies how the Sarbanes-Oxley Act implements the eternal compliance obligation that is not useful for business, but it wastes company revenue and time (Hunter, 2007). Hunt explained that through development of PCAOB, the board of directors can apply a large scale fine to the senior management (CEO and CFO) within the organization through the SOX law.